Local farmers need greater government support amid the expected expiration of import curbs for milled rice, which is cheaper than homegrown grains, according to the Samahang Industriya ng Agrikultura (Sinag).
The umbrella group of farmers, agri-business operators and party list groups Monday also said the removal of import quotas for milled rice would not cut prices of the staple grain.
“The liberalization of the agriculture sector since the mid-1990s saw the dumping of agriculture imports but it did not redound to the lowering of prices of most, if not all, agriculture products,” Sinag chair Rosendo So told the Inquirer.
So said that, for example, the garlic industry—which sources as much as 90 percent of supply from abroad— did not see lower prices, and even experienced a price spike.
“Quantitative restrictions on rice did not hinder the importation of greater volumes. In fact, the Philippines has been one of the top importers of rice in the last decade or so,” he said.
“This does not even take in to account the flourishing trade of rice smuggling that continues to this day,” he added.
Sinag believes that, instead of relying on imports “that only help the rice farmers of rice exporting countries,” the government should pursue the “genuine development” of the local rice industry through the following efforts.
First, support rice farmers with the provision of farm inputs including seeds, irrigation, credit and insurance coverage, as well as support in the post-and marketing stage.
Second, increase the farmgate support price of National Food Authority.
And third, provide incentives to local rice millers who want to modernize their milling operations and facilities.
So said the cost of producing palay in the Philippines was around P10-P12 per kilo while farmers in Vietnam grow palay at P6.50 a kilo and in Thailand and India at about P9 a kilo.
The import quota system—which will expire on June 30, 2017, even if the government does not lift it—commits the government to allow into the Philippines a minimum of 805,200 tons yearly.